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zlopas [31]
3 years ago
8

International Data Systems' information on revenue and costs is relevant only up to a sales volume of 115,000 units. After 115,0

00 units, the market becomes saturated and the price per unit falls from $16.00 to $9.80. Also, there are cost overruns at a production volume of over 115,000 units, and variable cost per unit goes up from $8.00 to $8.25. Fixed costs remain the same at $65,000. a. Compute operating income at 115,000 units.
Business
1 answer:
e-lub [12.9K]3 years ago
3 0

Answer:

$855,000

Explanation:

The computation of the operating income is shown below:

Operating income at 115,000 units is

= (Selling price per unit - variable cost per unit) × sales volume - fixed cost

= ($16 - $8) × 115,000 - 65,000

= $855,000

Hence, the operating income at 115,000 units is $855,000

All other things are irrelevant. Hence, ignored it

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Juan Alcobar is junior sales representative for a large equipment manufacturer. Sarah Gittins, a senior sales representative, ha
ipn [44]

Answer:

C. A proposal of products that will solve the prospect's problems.

Explanation:

With regards to the above scenario, both Joan and Sarah put together a proposal of products that will solve the project's problems by critically analyzing the needs of the huge new prospect and providing various options.

Here, both staff knew the need of the prospect hence are able to come up with necessary questions and various solutions that would address the needs.

In addressing a need, various alternatives to providing solution to that need must be made available which is what was provided to the huge new client.

7 0
3 years ago
The December 31, 2020, Allowance account balance includes $3,076 for a past due account that is not likely to be collected. This
Blizzard [7]

Answer:

There will be no effect on working capital upon write off as the entries required would be a credit to receivables and a debit to allowance account.

Explanation:

The allowance account is the account used to record receivables due that may not be collectible.

When a company has determined that a receivable may be uncollectible, the company credits the allowance for receivables account and debits bad debit expense. This reduces the accounts receivable balance in the balance sheet as the receivables to be reported will be net the allowance given. As such, where on December 31, 2020, Allowance account balance includes $3,076 for a past due account that is not likely to be collected.

There will be no effect on working capital upon write off as the entries required would be a credit to receivables and a debit to allowance account.

8 0
3 years ago
Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The
hodyreva [135]

Answer:

$3,515

Explanation:

The computation of the catering supplies is shown below:

= Catering supplies per month + per job cost  × expected number of jobs + per meal cost  × expected number of meals

= $350 + $89 × 21 jobs + $9 × 144 meals

= $350 + $1,869 + $1,296

= $3,515

Since the question is asking for planning budget so we considered the expected units in terms of jobs and meals

8 0
3 years ago
A company produces a single product. Variable production costs are $12.50 per unit and variable selling and administrative expen
wlad13 [49]

Answer:

value of ending inventory under variable production is $104375

Explanation:

given data

Variable production costs = $12.50 per unit

variable selling and administrative expenses = $3.50 per unit

Fixed manufacturing overhead totals = $41,000

Fixed selling and administration expenses total = $45,000

production = 4,500 units

sales = 3,850 units

to find out

the dollar value of the ending inventory under variable costing would be

solution

we find here ending inventory that is express as

ending inventory = production - sale

ending inventory = 4500 - 3850

ending inventory = 8350

so

variable production cost of 8350 units are

variable production cost = 8350 × $12.50

variable production cost = $104375

so value of ending inventory under variable production is $104375

8 0
3 years ago
A company has the following unadjusted account balances at December 31, of the current year; Accounts Receivable of $185,700 and
stellarik [79]

Answer:

a. The amount of the Allowance for Doubtful Accounts that should appear on the December 31, Balance Sheet of the current year is:

= $8,965.

b. Adjusting Journal Entry:

Debit Bad Debts Expense $7,365

Credit Allowance for Doubtful Accounts $7,365

To record bad debts expense and bring the balance of the Allowance for Doubtful Accounts to a credit balance of $8,965.

Explanation:

a) Data and Calculations:

Accounts Receivable balance = $185,700

Allowance for Doubtful Accounts $1,600 (credit balance)

Aging Schedule:

Account Age                 Balance  Estimated Uncollectible   Amount

                                                                 Percentage

Current (not yet due) $96,000                  1.00%                    $960

1—30 days past due    64,000                  2.50%                    1,600

30—60 days past due  16,000                  11.00%                   1,760

61—90 days past due    6,500                  37.00%                 2,405

Over 90 days past due 3,200                  70.00%                 2,240

Total                         $185,700                                              $8,965

Bad Debts Expense:

Allowance for Uncollectible Accounts:

Beginning balance     ($1,600)

Ending balance           $8,965

Bad Debts expense = $7,365

5 0
3 years ago
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